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  • Margin Requirements

    • BC-9.9.19

      Before conducting a transaction with or for a customer, Islamic bank licensees must notify the customer of:

      (a) The circumstances in which the customer may be required to provide any margin;
      (b) The form in which the margin may be provided;
      (c) The steps the Islamic bank licensee may be required or entitled to take if the customer fails to provide the required margin, including:
      (i) The fact that the customer's failure to provide margin may lead to the Islamic bank licensee closing out his position after a time limit specified by the firm;
      (ii) The circumstances in which the Islamic bank licensee will have the right or duty to close out the customer's position; and
      (iii) The circumstances, other than failure to provide the required margin, that may lead to the Islamic bank licensee closing out the customer's position without prior reference to him.
      Amended: July 2015
      Added: April 08

    • BC-9.9.20

      Islamic bank licensees must close out a customer's open position if that customer has failed to meet a margin call within a maximum of five business days following the date on which the obligation to meet the call accrues, unless:

      (a) The Islamic bank licensee has received confirmation from a relevant third party (such as a clearing firm) that the customer has given instructions to pay in full; or
      (b) The Islamic bank licensee has taken reasonable care to establish that the delay is owing to circumstances beyond the customer's control.
      Amended: July 2015
      Amended: January 2011
      Added: April 2008

    • BC-9.9.21

      For the purposes of Rule BC-9.9.20, Islamic bank licensees may require the closing of a customer's open position in less than five business days, for their own risk management purposes.

      Amended: July 2015
      Added: April 08

    • BC-9.9.22

      Islamic bank licensees must also follow the requirements of Chapter BC-8 concerning the operation of the margin trading system.

      Amended: October 2015
      Amended: January 2011
      Added: April 2008